This is an important extension to the credit card debt story we have previously covered. The concern is not simply that Australians are using cards. Credit cards can be useful when balances are cleared in full. The pressure starts when everyday spending rolls into ongoing debt and begins attracting high purchase interest. Canstar estimated Australians are collectively paying about $10 million a day in credit card interest, based on an average purchase rate of 18.61 per cent.

The May data also showed card spending remains elevated. Australians put $29.9 billion through personal credit cards during the month, up $1.1 billion from April on a seasonally adjusted basis. Total credit and debit card transactions reached $89.5 billion, the second highest level on record. For families relying on cards to bridge gaps between pay cycles, this can quickly become a cycle where minimum repayments barely reduce the original balance.

For anyone carrying several credit cards, buy now pay later balances, personal loans or car finance, the practical step is to list every debt, interest rate, monthly fee, repayment date and remaining balance. That snapshot makes it easier to see which debts are costing the most and whether a structured repayment plan could help. Some borrowers may benefit from a balance transfer, while others may consider debt consolidation loans if they can secure a lower overall cost and avoid reusing cleared credit limits.

Debt consolidation is not automatically the right answer. A longer loan term can reduce the monthly repayment but increase total interest over time, and application fees or early payout costs can change the result. Before making a decision, it is worth taking time to compare options and seek professional guidance if the numbers are unclear. The key is to act before interest charges become unmanageable, not after repayments have already started falling behind.